Importing from the UK - what do I need to know?

bijou

Hi all - I'm in the process of starting up a small business, however, the machine I require for this is based in the UK.
I have spoken with the supplier and they have advised me that either they can deliver the machine to me or I can collect it. The supplier advised me that I might not need to pay the UK VAT on this machine but they weren't 100% certain, they advised me that they have exported to other european countries and the buyer hasn't had to pay the VAT.
In order not to pay the VAT do I need to be VAT registered here?
I suppose my question is::: how does this all work? It would be a once off purchase.
Can anybody advise?
Thanks - bijou

mneylon

If you are VAT registered in Ireland you should not have to pay VAT to a UK supplier

aidan.connolly

Hi,

In order for you not to pay vat on your machine, you must have an Irish Vat Number. The UK company are obilged by law to charge you Uk Vat vat @ 17.5% on the machine if you can't produce a valid Vat number.
If you have a vat number the company in the uk quote this on the invoice to you, and they don't charge you UK vat.

If you business is going to be charging vat when you start trading then you may also need to be registered if your trading reaches the threshold for registration for Irish Vat 35 K EURO for Services and 75K EURO for the sale of goods. This will also allow recovery of Irish vat ( subject to some exceptiuons) you pay out.

If you are doubt get professional advice. It is money well spent, or even check out www.revenue.ie They have just published a new vat guide that you can download.

Good luck with your business.

bijou

aiden
Thanks for that - it's made it a bit clearer for me.
One other question I have is that as I don't envisage making more than the threshold you mention (well....to begin with;)) and as i'm looking to do this part time initially, is it worth me registering for VAT anyway, and if i did would I have to do returns for the revenue etc even though i haven't "hit" the threshold?
Sorry, I'm a bit green with all this - i suppose you have to start somewhere:)
thanks for your advice,
bijou

aidan.connolly

If you register for vat you will be obilege to charge vat on all your sales. This vat amount, less any vat on business items and services ( excluding petrol, car hire, entertainment food and drink etc ) is paid over to the tax authorities. If you have a small business the tax authorities may allow you to submit a 6 monthly return or even a return once a year. Some business do a vat return every two months.

If you purchase the machine form the UK and don't want to pay vat ( UK Vat ) on it, you will have to be registered. If you decide you dont want to register, you can pay the UK vat and it will become part of the cost of the machine.
If you do this you wont have to register for vat until you reach the threshold or decide later that you want to register. The vat you pay on the machine is not recoverable from the Irish Tax authorities.
I hope this is cear.
Good luck

bijou

aiden
now I understand it!! thanks for the help.
bijou